- Shares of Enanta Pharmaceuticals Inc (NASDAQ: ENTA) have declined 51.37 percent over the past three months, hitting a low of $23.90 on Thursday.
- Liisa A. Bayko of JMP Securities has upgraded the rating on the company from Market Perform to Outperform, with a price target of $32.
- Bayko believes that the market has overreacted to the FDA warning on the company’s HCV drug, Viekira Pak.
Analyst Liisa Bayko reported that Enanta Pharma’s shares fell 40 percent following the FDA warning about the risk of serious liver injury in patients with advanced liver disease associated with AbbVie Inc (NYSE: ABBV) and Enanta Pharma’s Viekira Pak.
Related Link: Wall Street Defends AbbVie, Says Reaction Is Overdone
“In our opinion, the sell-off was an over-reaction to the news, as we believe the impact to sales will be modest, particularly as some of the revenue base is secured by exclusive contracts,” Bayko said.
Enanta Pharma’s next-gen combo, which does not contain any of Viekira Pak’s components, is expected to hit the market in 2018. Bayko expects peak sales of $3 billion for the next-gen combo, with 90 percent probability of success on NPV.
In addition, Viekira Pak is expected to contribute royalties of $16 million to the company in the September quarter, on sales of $520 million.
Latest Ratings for ENTA
|Aug 2015||JP Morgan||Maintains||Overweight|
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